EXW Test Study Guide Already Graded A+
EXW Test Questions and Answers
What is the meaning of "Ex Works" in the context of international trade?
"Ex Works" (EXW) means that the seller has fulfilled their obligation when the goods are made available
for pick-up at their premises, and the buyer takes responsibility for all subsequent costs and risks.
✔️✔️
Under EXW, who arranges the freight forwarding process?
The buyer arranges and pays for all aspects of freight forwarding, including transportation from the
seller's premises to the final destination. ✔️✔️
Who is responsible for paying for transportation from the seller’s warehouse to the port or terminal in
an EXW contract?
The buyer is responsible for paying for transportation from the seller’s warehouse to the port or
terminal, as the seller is not responsible for this under EXW. ✔️✔️
What is the seller's responsibility if the goods are damaged after being made available under EXW?
Once the goods are made available to the buyer under EXW, the risk of damage or loss shifts to the
buyer, and the seller is not responsible for any damage thereafter. ✔️✔️
Does EXW require the seller to provide transportation arrangements?
No, the seller does not need to provide transportation arrangements under EXW. It is the buyer's
responsibility to organize and pay for all transport. ✔️✔️
Is the buyer obligated to arrange for insurance under EXW?
Yes, the buyer is responsible for arranging transport insurance if desired, as EXW does not include the
cost of insurance. ✔️✔️
,At what location is the transfer of risk under EXW completed?
Risk is transferred when the goods are made available for pick-up at the seller’s premises or another
agreed location. ✔️✔️
Can the buyer resell the goods under EXW before taking delivery?
Yes, the buyer can resell the goods before taking delivery, but they assume full responsibility for them as
soon as they are made available. ✔️✔️
Is the seller required to provide an export license or export customs declaration under EXW?
No, under EXW, the seller is not responsible for providing an export license or handling export customs
procedures; the buyer takes care of these. ✔️✔️
How does EXW affect the buyer’s responsibility for customs formalities at the destination?
Under EXW, the buyer is fully responsible for import customs formalities, including clearance, duties,
and taxes at the destination. ✔️✔️
What is the main advantage of EXW for the seller?
The main advantage for the seller is that their responsibility ends once the goods are made available at
their premises, and they are not involved in transportation or customs procedures. ✔️✔️
Can EXW be used for any mode of transport?
Yes, EXW can be used for any mode of transport, whether by land, sea, air, or a combination. The buyer
arranges the appropriate transport. ✔️✔️
Is there a minimum distance requirement for EXW to apply?
No, EXW does not have a minimum distance requirement and can apply for both short-distance and
long-distance shipments. ✔️✔️
What should the seller do to ensure compliance with EXW terms?
The seller must ensure that the goods are available for pick-up at the agreed location, properly
packaged, and ready for transportation as per the contract. ✔️✔️
, Under EXW, who arranges for loading the goods onto the buyer’s transport vehicle?
The buyer is responsible for arranging and paying for the loading of the goods onto their transport
vehicle. The seller is not responsible for loading. ✔️✔️
How does EXW impact the cost of freight for the buyer?
The buyer must bear all costs of freight from the seller’s premises to the final destination, including
transportation, insurance, and any other associated expenses. ✔️✔️
What happens if the buyer cannot pick up the goods on the agreed date under EXW?
If the buyer does not pick up the goods, the seller’s responsibility is considered fulfilled, and the buyer
may incur storage or other costs depending on the seller’s terms. ✔️✔️
Does EXW apply to the sale of both finished goods and raw materials?
Yes, EXW can apply to both finished goods and raw materials, as it is a term used for the sale of any
physical goods. ✔️✔️
Is the seller liable for damage to goods during transport if EXW terms are used?
No, the seller is not liable for damage during transport, as the buyer assumes all responsibility for the
goods once they are made available. ✔️✔️
Under EXW, who is responsible for unloading the goods at the final destination?
The buyer is responsible for unloading the goods at the final destination, as the seller is not involved in
unloading under EXW. ✔️✔️
Can the buyer inspect the goods before picking them up under EXW?
Yes, the buyer may inspect the goods before picking them up at the seller’s premises, as the goods must
be made available for inspection. ✔️✔️
Under EXW, who handles any unexpected costs or delays during transportation?
